Bitcoin has been the center of attention as analysts anticipate its recovery above the $100,000 mark, even amid lower institutional buying power over the holiday season. The cryptocurrency has traded below this significant psychological threshold since December 19, struggling to maintain its historic values. Currently, Bitcoin (BTC) sits approximately 9.7% off its all-time high of over $108,300 achieved on December 17, according to data from Cointelegraph Markets Pro.
Despite these setbacks, Ryan Lee, chief analyst at Bitget Research, posits Bitcoin could rebound and potentially surpass $105,000 as liquidity returns post-holidays. “After Christmas, market activity typically picks up again with funds positioning themselves actively,” he noted, hinting at the expected trading range for BTC this week to fall between $94,000 and $105,000.
Lee's optimistic forecast aligns closely with the upcoming presidential inauguration of Donald Trump on January 20—a pivotal event many anticipate could bolster positive cryptocurrency regulations and stimulate the economy through 2028. Even as bullish predictions circulate, Bitcoin's price performance is currently hampered by declines within U.S. Bitcoin spot ETFs, which have seen four straight days of losses.
Data reported by Farside Investors indicates these ETFs have experienced over $338 million in net outflows as of December 24. These fund flows have historically driven Bitcoin prices higher, with BTC prices breaching the $50,000 threshold by mid-February. This correlation emphasizes the importance of ETF performance on Bitcoin's valuation. Observing metrics such as the funding rate—at 0.0100% on Binance—gives additional bullish signals, as positive funding rates suggest market strength with buyers covering costs for sellers.
Nevertheless, technical charts indicate Bitcoin's current downturn may extend. Rekt Capital, another cryptocurrency analyst, observed via X on December 24, “Bitcoin showed signs of relief rallying before being rejected, indicating potential future dips.”
Yet, several analysts remain hopeful about Bitcoin's prospects for the coming year, some even projecting surges to $160,000 by 2025, primarily attributed to improving macroeconomic conditions according to crypto service provider Matrixport.
On the regulatory front, six Bitcoin tracking funds are poised to launch in Israel next week after the recent approval from the Israeli Securities Authority. Reports indicate these funds will mirror price movements of Bitcoin through various strategies and indices, available for purchase at local banks and investment firms starting December 31. Some funds aim to outperform Bitcoin directly, adjusting for market fluctuations.
Behind these new offerings are established mutual fund managers from Israel, including Phoenix Investment and Meitav, with management fees ranging from 0.25% to 1.5%. This development reflects Israel's broader initiative to integrate digital currencies, underscored by their exploration of a central bank digital currency (CBDC), the digital shekel. Launched through the 'Digital Shekel Challenge,' this project aims to invite participants to create real-time payment systems enabling competition with local banks—though privacy concerns linger.
João Canhada, founder of Foxbit, commented on the overall sentiment surrounding Bitcoin, labeling 2024 as transformative for the cryptocurrency sector. He noted, "Bitcoin started the year trading at $42,200. The peak came around March when it hit $73,000. After some hesitancy, October saw Bitcoin rise again, reaching around $108,000, marking impressive gains for investors." He highlighted the launch of Bitcoin ETFs as the linchpin for this cryptocurrency's acceptance, legitimizing its status with regulatory blessings.
“With macroeconomic conditions and political sentiments aligning favorably, Bitcoin is now regarded as financially mainstream, much like high-profile stocks,” Canhada emphasized.
Despite recent corrections, analysts expect Bitcoin’s enduring presence as more than just digital currency status—it’s progressively seen as equivalent to stocks like Nvidia and Tesla. The 2024 achievements transcend mere price tags and contribute to Bitcoin cementing itself as a key player not only within the crypto sector but also the overarching financial ecosystem. Canhada expresses optimism, stating, "This year marked Bitcoin's ascendance beyond its prior market status definitions. It's reshaping how we perceive and invest within our economic structures at large."
